Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Weakening won fuels increase in foreign nationals buying homes in Seoul
Tourists take photos of Seoul’s skyline, where apartment buildings dominate the cityscape, Friday. Yonhap
By Yi Whan-woo
A sharp decline in the Korean won, which has strengthened major foreign currencies, is fueling a buying spree of homes in Seoul among foreign nationals, as properties priced in won become more affordable, industry officials said Friday.
Property purchases by foreign nationals have been rising steadily, with ownership surpassing 100,000 units nationwide for the first time this year. About 72.5 percent of these purchases are concentrated in Seoul and the greater capital area, according to the Ministry of Land, Infrastructure and Transport.
The ministry explained that the number of foreign-owned homes reached an all-time high of 104,065 as of June, up from 98,581 at the end of 2024.
Chinese nationals owned 56.6 percent of these 104,065 homes, followed by Americans at 21.5 percent.
During this period, the Korean won fell more against the Chinese yuan and the U.S. dollar from June to November than it did from January to June.
The Chinese yuan gained 7.3 percent against the won in the first six months of the year, followed by a 9.54 percent increase from June to November.
The U.S. dollar rose 7.6 percent from January to June, then climbed 8.65 percent from June to November.
In comparison, apartment prices in Seoul rose 6.02 percent from June to November, trailing the gains of both the Chinese yuan and the U.S. dollar, according to KB Land, the property data tracker of KB Kookmin Bank.
“The won’s depreciation, combined with Seoul apartments’ slower price growth compared with major foreign currencies, makes Korean real estate appear like a ‘discount sale’ to foreign investors,” said Kwon Dae-jung, a real estate professor at Hansung University.
The professor said the buying spree may persist as capital outflows continue to weaken the won, driven by the National Pension Service’s expanded overseas investment, exporters holding dollar earnings and rising U.S. stock purchases by retail investors.
Kim Je-kyung, chief consultant at real estate agency Tumi, voiced a similar sentiment, saying, “Rising foreign currencies against the won can boost foreign investors’ buying sentiment, as holding dollars or yuan effectively increases their purchasing power.”
“This, in turn, puts indirect upward pressure on Seoul house prices,” he added, noting that apartments are the most popular property option across the country.
Kim speculated that foreign buyers “might still be willing to take risks” despite tighter regulations aimed at curbing the home-buying spree among overseas nationals.
Introduced in August, the tougher rules were a response to complaints that housing regulations mainly target Koreans — including mortgages and speculative purchases — while largely leaving foreign nationals unaffected.
Foreign nationals seeking to purchase homes in Korea are now barred from buying new properties in the Seoul metropolitan area unless they intend to live there for at least two years.
Additionally, all of Seoul and much of the greater capital region have been designated as zones requiring special government approval for any property purchase by overseas buyers.